Texas Laws - Property Code
PROPERTY CODE
TITLE 11. RESTRICTIVE COVENANTS

(11) the approval of an annual budget or the approval of an amendment of an annual budget that increases the budget by more than 10 percent; (12047)

(12) the sale or purchase of real property; (12048)

(13) the filling of a vacancy on the board; (12049)

(14) the construction of capital improvements other than the repair, replacement, or enhancement of existing capital improvements; or (12050)

(15) the election of an officer. (12051)

(i) This section applies to a meeting of a property owners' association board during the development period only if the meeting is conducted for the purpose of: (12052)

(1) adopting or amending the governing documents, including declarations, bylaws, rules, and regulations of the association; (12053)

(2) increasing the amount of regular assessments of the association or adopting or increasing a special assessment; (12054)

(3) electing non-developer board members of the association or establishing a process by which those members are elected; or (12055)

(4) changing the voting rights of members of the association. (12056)

Added by Acts 2011, 82nd Leg., R.S., Ch. 1026 (H.B. 2761), Sec. 3, eff. January 1, 2012. (12057)

Amended by: (12058)

Acts 2015, 84th Leg., R.S., Ch. 1183 (S.B. 1168), Sec. 8, eff. September 1, 2015. (12059)

Sec. 209.0052. ASSOCIATION CONTRACTS. (12060)(1-click HTML)

(a) This section does not apply to a contract entered into by an association during the development period. (12061)

(b) An association may enter into an enforceable contract with a current association board member, a person related to a current association board member within the third degree by consanguinity or affinity, as determined under Chapter 573, Government Code, a company in which a current association board member has a financial interest in at least 51 percent of profits, or a company in which a person related to a current association board member within the third degree by consanguinity or affinity, as determined under Chapter 573, Government Code, has a financial interest in at least 51 percent of profits only if the following conditions are satisfied: (12062)

(1) the board member, relative, or company bids on the proposed contract and the association has received at least two other bids for the contract from persons not associated with the board member, relative, or company, if reasonably available in the community; (12063)

(2) the board member: (12064)

(A) is not given access to the other bids; (12065)

(B) does not participate in any board discussion regarding the contract; and (12066)

(C) does not vote on the award of the contract; (12067)

(3) the material facts regarding the relationship or interest with respect to the proposed contract are disclosed to or known by the association board and the board, in good faith and with ordinary care, authorizes the contract by an affirmative vote of the majority of the board members who do not have an interest governed by this subsection; and (12068)

(4) the association board certifies that the other requirements of this subsection have been satisfied by a resolution approved by an affirmative vote of the majority of the board members who do not have an interest governed by this subsection. (12069)

Added by Acts 2013, 83rd Leg., R.S., Ch. 863 (H.B. 503), Sec. 2, eff. September 1, 2013. (12070)

Sec. 209.0055. VOTING. (12071)(1-click HTML)

(a) This section applies only to a property owners' association that: (12072)

(1) provides maintenance, preservation, and architectural control of residential and commercial property within a defined geographic area in a county with a population of 2.8 million or more or in a county adjacent to a county with a population of 2.8 million or more; and (12073)

(2) is a corporation that: (12074)

(A) is governed by a board of trustees who may employ a general manager to execute the association's bylaws and administer the business of the corporation; (12075)

(B) does not require membership in the corporation by the owners of the property within the defined area; and (12076)

(C) was incorporated before January 1, 2006. (12077)

(b) A property owners' association described by Subsection (a) may not bar a property owner from voting in an association election solely based on the fact that: (12078)

(1) there is a pending enforcement action against the property owner; or (12079)

(2) the property owner owes the association any delinquent assessments, fees, or fines. (12080)

Added by Acts 2007, 80th Leg., R.S., Ch. 1367 (H.B. 3674), Sec. 8, eff. September 1, 2007. (12081)

Sec. 209.0056. NOTICE OF ELECTION OR ASSOCIATION VOTE. (12082)(1-click HTML)

(a) For an election or vote taken at a meeting of the owners, not later than the 10th day or earlier than the 60th day before the date of the election or vote, a property owners' association shall give written notice of the election or vote to: (12083)

(1) each owner of property in the property owners' association, for purposes of an association-wide election or vote; or (12084)

(2) each owner of property in the property owners' association entitled under the dedicatory instruments to vote in a particular representative election, for purposes of a vote that involves election of representatives of the association who are vested under the dedicatory instruments of the property owners' association with the authority to elect or appoint board members of the property owners' association. (12085)

(a-1) For an election or vote of owners not taken at a meeting, the property owners' association shall give notice of the election or vote to all owners entitled to vote on any matter under consideration. The notice shall be given not later than the 20th day before the latest date on which a ballot may be submitted to be counted. (12086)

(b) This section supersedes any contrary requirement in a dedicatory instrument. (12087)

(c) This section does not apply to a property owners' association that is subject to Chapter 552, Government Code, by application of Section 552.0036, Government Code. (12088)

Added by Acts 2011, 82nd Leg., R.S., Ch. 1026 (H.B. 2761), Sec. 3, eff. January 1, 2012. (12089)

Amended by: (12090)

Acts 2015, 84th Leg., R.S., Ch. 1183 (S.B. 1168), Sec. 9, eff. September 1, 2015. (12091)

Sec. 209.0057. RECOUNT OF VOTES. (12092)(1-click HTML)

(a) This section does not apply to a property owners' association that is subject to Chapter 552, Government Code, by application of Section 552.0036, Government Code. (12093)

(b) Any owner may, not later than the 15th day after the later of the date of any meeting of owners at which the election or vote was held or the date of the announcement of the results of the election or vote, require a recount of the votes. A demand for a recount must be submitted in writing either: (12094)

(1) by verified mail or by delivery by the United States Postal Service with signature confirmation service to the property owners' association's mailing address as reflected on the latest management certificate filed under Section 209.004; or (12095)

(2) in person to the property owners' association's managing agent as reflected on the latest management certificate filed under Section 209.004 or to the address to which absentee and proxy ballots are mailed. (12096)

(b-1) The property owners' association must estimate the costs for performance of the recount by a person qualified to tabulate votes under Subsection (c) and must send an invoice for the estimated costs to the requesting owner at the owner's last known address according to association records not later than the 20th day after the date the association receives the owner's demand for the recount. (12097)

(b-2) The owner demanding a recount under this section must pay the invoice described by Subsection (b-1) in full to the property owners' association on or before the 30th day after the date the invoice is sent to the owner. (12098)

(b-3) If the invoice described by Subsection (b-1) is not paid by the deadline prescribed by Subsection (b-2), the owner's demand for a recount is considered withdrawn and a recount is not required. (12099)

(b-4) If the estimated costs under Subsection (b-1) are lesser or greater than the actual costs, the property owners' association must send a final invoice to the owner on or before the 30th business day after the date the results of the recount are provided. If the final invoice includes additional amounts owed by the owner, any additional amounts not paid to the association before the 30th business day after the date the invoice is sent to the owner may be added to the owner's account as an assessment. If the estimated costs exceed the final invoice amount, the owner is entitled to a refund. The refund shall be paid to the owner at the time the final invoice is sent under this subsection. (12100)

(c) Following receipt of payment under Subsection (b-2), the property owners' association shall, at the expense of the owner requesting the recount, retain for the purpose of performing the recount the services of a person qualified to tabulate votes under this subsection. The association shall enter into a contract for the services of a person who: (12101)

(1) is not a member of the association or related to a member of the association board within the third degree by consanguinity or affinity, as determined under Chapter 573, Government Code; and (12102)

(2) is: (12103)

(A) a current or former: (12104)

(i) county judge; (12105)

(ii) county elections administrator; (12106)

(iii) justice of the peace; or (12107)

(iv) county voter registrar; or (12108)

(B) a person agreed on by the association and each person requesting the recount. (12109)

(d) On or before the 30th day after the date of receipt of payment for a recount in accordance with Subsection (b-2), the recount must be completed and the property owners' association must provide each owner who requested the recount with notice of the results of the recount. If the recount changes the results of the election, the association shall reimburse the requesting owner for the cost of the recount not later than the 30th day after the date the results of the recount are provided. Any action taken by the board in the period between the initial election vote tally and the completion of the recount is not affected by any recount. (12110)

Added by Acts 2011, 82nd Leg., R.S., Ch. 1026 (H.B. 2761), Sec. 3, eff. January 1, 2012. (12111)

Amended by: (12112)

Acts 2015, 84th Leg., R.S., Ch. 1183 (S.B. 1168), Sec. 10, eff. September 1, 2015. (12113)

Sec. 209.0058. BALLOTS. (12114)(1-click HTML)
  

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